Tata elxsi share price

Tata Elxsi Stock Soars Nearly 12% – Is This the Start of a Massive Bull Run?

In a surprising turn of events, Tata Elxsi’s stock soared by nearly 12% on Monday, extending its winning streak for the sixth straight session. As the stock reaches new highs, investors are buzzing with excitement. Is this the beginning of a massive bull run? Let’s dive into the details and see what’s fueling this incredible surge!

Tata Elxsi Stock Surges 12% – What’s Behind the Rally?

Tata Elxsi Ltd’s shares experienced a sharp rise in late trading on Monday, with the stock soaring 11.91% to hit an intraday high of Rs 7,930.65. It eventually settled 8.88% higher at Rs 7,715.95 on the BSE. Over the past month, the stock has climbed 10.84%, though it has slipped 11.78% on a year-to-date (YTD) basis.

The trading volume was particularly high, with around 50,000 shares changing hands—significantly above the two-week average volume of 5,381 shares. The turnover reached Rs 37.87 crore, giving the company a market capitalisation (m-cap) of Rs 48,052.19 crore.

Technical Indicators Show Strong Momentum

Tata Elxsi’s stock traded above its 5-day, 10-day, 20-day, 30-day, 50-day, 100-day, 150-day, and 200-day simple moving averages (SMAs), indicating strong upward momentum. The 14-day relative strength index (RSI) stood at 78.91, signaling that the stock is currently in overbought territory.

Financial Performance and Market Sentiment

As per BSE data, Tata Elxsi has a price-to-equity (P/E) ratio of 56.04 and a price-to-book (P/B) value of 17.61. The company’s earnings per share (EPS) are Rs 126.45, with a return on equity (RoE) of 31.43%. Despite these strong metrics, Kotak Institutional Equities has issued a ‘Sell’ rating on the stock, pegging its fair value at Rs 5,500.

In terms of recent earnings, Tata Elxsi reported a 3% dip in net profit for the first quarter of FY25, at Rs 184 crore, compared to Rs 189 crore in the same period last year. However, revenue from operations increased by 9% year-on-year (YoY) to Rs 926 crore, up from Rs 850 crore in the corresponding period last year.

What’s Next for Tata Elxsi?

For those considering a BTST (Buy Today, Sell Tomorrow) strategy, Tata Elxsi might be worth a look. Brijesh Singh of StockAxis suggests keeping a stop loss at Rs 7,700 and targeting a near-term price of Rs 8,200.

Conclusion:

Tata Elxsi’s recent stock surge has captured the market’s attention, but opinions are divided. While the stock is showing strong technical indicators and has posted solid revenue growth, some analysts are cautious, citing a potential overvaluation. Whether you’re bullish or bearish, it’s clear that Tata Elxsi is a stock to watch closely in the coming weeks.

FAQs:

1.Why did Tata Elxsi’s stock surge nearly 12%?

A. The stock surged due to strong trading volume and positive market sentiment, extending its gains for the sixth consecutive session.

2.What is the current price of Tata Elxsi’s stock?

A. As of the latest trading session, Tata Elxsi’s stock settled at Rs 7,715.95 on the BSE.

3.What is the 14-day RSI for Tata Elxsi’s stock?

A. The 14-day RSI for Tata Elxsi’s stock is 78.91, indicating that it is in overbought territory.

4.What is the recommendation from Kotak Institutional Equities on Tata Elxsi?

A. Kotak Institutional Equities has given a ‘Sell’ rating on the stock, with a fair value pegged at Rs 5,500.

5.How did Tata Elxsi perform in Q1 FY25?

A. Tata Elxsi reported a 3% dip in net profit for Q1 FY25, at Rs 184 crore, with revenue from operations increasing by 9% YoY to Rs 926 crore.

6.Is Tata Elxsi a good candidate for BTST trading?

A. According to Brijesh Singh of StockAxis, Tata Elxsi could be a good BTST candidate with a stop loss at Rs 7,700 and a target price of Rs 8,200.

7.What is the market capitalisation of Tata Elxsi?

A. Tata Elxsi’s market capitalisation stands at Rs 48,052.19 crore.

8.What sectors does Tata Elxsi serve?

A. Tata Elxsi provides design and technology services across industries, including automotive, broadcast, communications, healthcare, and transportation.